GBP/JPY testing into the low end on Monday, struggling to hold onto 188.00

The GBP/JPY is sagging below the 188.00 handle on Monday as the Pound Sterling (GBP) finds itself falling back against the Japanese Yen (JPY), trimming back gains after the GBP/JPY peaked at 188.66 last week. 

The pair hit an eight-year high last week with the GBP trading into its highest prices against the JPY since August of 2015, and the Guppy is seeing some pullback to start the new trading week.

BoE Governor Bailey to make an appearance this week, Japan Retail figures on offer

GBP/JPY traders will be turning their focus to Bank of England (BoE) Governor Andrew Bailey’s appearance on Wednesday, due to speak at an event celebrating the 50th anniversary of the London Foreign Exchange Joint Standing Committee.

Early Thursday will follow up with the release of October’s annualized Japan Retail Trade numbers. Japanese Large Retail Sales last printed at 5% for September, and the median market forecast sees overall Retail Trade for the year into October to come in at 5.9%, a slight uptick from September’s reading of 5.8%.

GBP/JPY Technical Outlook

With the GBP/JPY trading back from multi-year highs set last week at 188.66, the pair is getting snarled on the 50-hour Simple Moving Average (SMA) just below the 188.00 handle, and near-term technical support sits at the 200-hour SMA near 186.80.

Daily candlesticks are still looking firmly well-bid for the GBP/JPY, and Guppy bears will be looking for an extended decline back below the last swing low into the 184.00 handle after the pair closed in the green for four consecutive trading days last week.

GBP/JPY Daily Chart

GBP/JPY Technical Levels